Suppose the Marginal Utility of a Unit of Good X

question 66

True/False

Suppose the marginal utility of a unit of good x = MU_x, the marginal utility of a unit of good y = MU_y, P_x= price of a unit of good x, and P_y= price of a unit of a good y. If MU_x/P_x > MU_y/P_y, the consumer can increase utility by buying more of good x.

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Definitions:

Effortful Control

The ability to regulate one's emotions and actions through conscious, volitional control instead of automatic responses.

Negative Affect

A broad range of feelings and emotions that are unpleasant or undesirable, such as sadness, anger, or anxiety.

Extraversion

A personality trait characterized by outgoingness, high energy, and a tendency to seek stimulation in the company of others.

Dominant Mood

The prevailing emotional state or overall feeling that characteristically influences an individual's attitude and behavior.